I spoke with Burbank real estate specialist, Ana Connell, today.  Ana's "other life" paralleled mine; she was a manager for a securities brokerage firm before she started her career in real estate brokerage.  We chuckled as we talked about the principles of technical analysis and how it might apply to residential real estate .  I want to share the product of our discussion with you, the Southern California property buyer.

I think that the real test of proper pricing for Southern California real estate is revealed when we analyze properties like a long-term investor may.  We are getting close to parity here.  If a property can create net positive cash flow, with a 20% down payment, and a a current market rate, interest-only loan, the game's over.  Long-term investors will flock to that purchase no matter what the near-term pricing does.

Here's why.  Investors believe in the long-term viability of the Southern California residential market, they just don't like the short-term negative cash-flow.

eg:   The unit can produce $2150/month in rent, what is a "safe" purchase price?

ANSWERS HERE